According to Netflix, password sharing will be prohibited starting in the US early in 2019. Here is how the streaming service will accomplish this as well as the rationale for the choice.

Here's why and how Netflix will stop allowing password sharing in 2023.


Because of recent crackdowns on sharers, there have been persistent rumors that Netflix plans to fully ban password sharing. In spite of this, the streaming service has thus far shown hesitant to make any important decisions out of concern for its patrons. In 2023, that will change. Netflix has recently announced that it will permanently end password sharing next year, which means everyone who wants to join Netflix will be required to pay for it. This decision was likely prompted by membership losses.

Over 100 million Netflix users, according to the company, access the site using passwords they borrow from friends and relatives. Starting in 2023, this agreement will come to an end, and users will have to pay for sharing accounts. The company predicts that the move will begin to take effect in the country in the first few months of next year, implying that the United States may serve as a test market for the decision.

In a few Latin American nations, Netflix has already begun experimenting with additional costs for password sharing, charging an additional $3. In these countries, the actual subscriber must provide a verification number to anyone outside the family who wants to access the account. Netflix continually asks the user outside the home for the code, despite the fact that the code is obviously not free.

Once the changes have been made, a similar adoption might occur in the US in 2023. In order to encourage account sharers to sign up for their own subscriptions rather than expecting the actual owner to pay for them, Netflix is considering charging them a price that is only a hair under the $6.99 ad-supported plan. Netflix will use IP addresses, device IDs, and account activity to make sure customers don't circumvent the password-sharing restrictions.

Why Netflix will no longer share passwords:

Netflix has reportedly known for a long time about the detrimental effects password sharing has on its bottom line, but has been delaying taking any action. action out of concern for upsetting customers. Following the epidemic, Netflix decided not to address the issue, which resulted in an increase in subscriptions in 2020. However, the service is currently in trouble because it has been losing subscribers.

Due to fierce competition and the situation in Ukraine, Netflix reported losing 200,000 members in its Q1 2022 financial report earlier this year. The company lost 700,000 customers when it ceased providing its services in Russia. Making matters worse, the corporation lost over 1 million members in the second quarter, the largest ever. Following the publication of the report, Netflix's shares fell 26%, wiping off roughly $40 billion in market value.

However, the third quarter of 2022 provided much-needed relief as the business reported the addition of 2.41 million global subscribers. When Netflix CEO Spencer Neumann said on the company's earnings call that they are "still not growing as fast as they'd like," the decision was made to end password sharing.

It is still unclear how much the change will help Netflix and whether it will actually result in more cancellations.